“In recent years, Chinese companies are fast emerging in LCD panels on the back of the government’s financial and legal support,” said Chung Yoon-sung, a director of DisplaySearch.

The Chinese government is supporting its local companies to reach its goal of raising the country’s LCD self-sufficiency rate from the current 40 percent to 80 percent by 2015. It has also implemented protective measures by increasing tariffs on LCD panel imports.

“However, Korea’s technology development process seems to still be slow,” said Lee Sin-doo, a professor of Seoul National University’s electrical engineering and computer science department.

Samsung showcased its ultrahigh-definition TV as its flagship model instead of its OLED TV at the international CES this month.

“Although Samsung has secured a high production yield rate for OLED TVs, we stopped short of having price competitiveness,” a Samsung source said.

The price of Samsung’s 55-inch full HD OLED TV is still much higher than LCD counterparts, though it dropped to around 8-10 million won from 15 million won. Its 55-inch LCD UHD TV costs 4 million won.

LCDs cost less as manufacturers are able to produce them more stably with fewer flaws than OLEDs, an industry source said.

Korean companies should keep increasing their investments in panel technology, said Lee of Seoul National University.

“The country’s electronics makers somewhat tend to hesitate to invest in panels. In order for the Korean companies to maintain their leadership down the road, they should keep investing in panels and materials,” the professor said.